Vietnamese Beer Consumption Trends Are Shifting Toward Premium

Statistics reveal that beer drinkers in Vietnam are increasingly shifting toward premium brews, prompting producers to rethink their business strategies to keep pace with this upscale trend.

According to an analysis by FPT Securities (FPTS), Vietnam’s beer market is divided into three main segments based on product price: mass-market, mid-range and premium. In the mid-range and premium segments, well-known brands such as Sabeco, Habeco, Heineken and Carlsberg dominate with their bottled and canned beers. By contrast, the mass-market segment is mainly made up of draft beer (bia hơi), a popular drink that is familiar to most consumers.

Spending on Premium Beer Keeps Rising

Premium beers today typically cost 30-40% more than mid-range products, yet that has not stopped the shift in consumer habits. Vietnamese drinkers are gradually moving away from mass-market and mid-range beers, which accounted for as much as 77% of total consumption volume in 2013, in search of newer and more refined experiences from premium beer.

Between 2013 and 2023, the premium beer segment saw an explosive surge, with an impressive compound annual growth rate of 8.5%. By 2023, premium beer accounted for 37.4% of total consumption volume, a striking figure compared with 22.7% in 2013.

Rising average incomes partly explain this trend, as consumers care not only about quantity but also place heavy weight on quality and flavor. According to a 2021 Deloitte survey, 55% of consumers consider quality, while 46% prioritize flavor when choosing alcoholic beverages.

In particular, a 2022 AC Nielsen survey revealed that as many as 88% of beer drinkers are willing to pay more for products that meet high quality standards.

A Major Challenge for New Beer Brands

Today, Vietnam’s beer market is controlled by four key “giants”: Heineken, Sabeco, Carlsberg and Habeco, with a combined market share of nearly 94% in 2023. In this fierce race, Sabeco and Heineken stand out the most, holding 33.9% and 43% of total consumption volume respectively, which shows how clearly they dominate.

Entering the beer industry means facing a major barrier, given the high level of concentration and the dominance of these heavyweights. These leading companies own extensive distribution networks and powerful brands, making it hard for newcomers to break into the market.

To maintain and expand their presence, the big players constantly innovate and refresh their product portfolios. They regularly launch new products and improve older ones to match shifting consumer tastes. At the same time, they invest heavily in advertising, marketing and promotions, spending around 13-15% of revenue on these activities, 2-3 percentage points above the average for the F&B industry. This investment not only strengthens their position but also stimulates consumption and boosts brand awareness.

Which ‘Giants’ Dominate the Premium Beer Market?

Rising demand for premium beer has pressured producers to keep innovating to keep up with consumer tastes. Heineken, for example, has not only kept growing its traditional beers such as original Tiger, original Heineken and Larue, which made up about 90% of total consumption volume from 2018 to 2023, but has also expanded into new premium products such as the low-alcohol Heineken Silver, the alcohol-free Heineken 0.0, and Tiger Platinum with its refreshing orange-peel aroma. By 2023, the growth of Heineken’s premium lines had lifted their share of consumption to 33.7%, up from 29.8% in 2018.

Carlsberg has been just as active, continuously launching new premium beers in 2022-2023, including 1664 Blanc, Carlsberg Danish Pilsner and Tuborg Ice, to meet growing demand for variety and quality.

Meanwhile, Sabeco, long known for mid-range beers such as 333, Saigon Lager and Saigon Export, which made up about 98% of its total volume from 2018 to 2023, is struggling to adapt to changing consumer tastes. Although the company has actively redesigned the packaging of its older products, Sabeco’s declining market share remains a major challenge in this period.

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